1. ASBA facility was introduced by SEBI in July 2008, as an alternative mode of payment in the public/rights issue processes. In its continuing endeavour to make the facility more efficient, SEBI reviewed the facility on a continuous basis and following reforms were introduced:

3. Based on the analysis of the current presence of ASBA facility, it is felt that there is substantial scope for increasing the reach of ASBA facility to make the application process more convenient for investors.

4. Towards this end, consultations were held with Reserve Bank of India, Indian Banks’ Association and other market participants, to explore the possibility of providing ASBA facility at all branches of Self Certified Syndicate Banks (SCSBs).

5. Based on the feedback received in this regard, it has been decided to increase the number of branches designated for ASBA, in a phased manner as under:

a. First phase

Fifty percent (50) of the total branches as designated branches for ASBA: Each SCSB is advised to designate 50% of its total branches as ‘Designated Branches’ for ASBA by October 31, 2012.

b. Second Phase

All the branches as designated branches for ASBA: Each SCSB is advised to designate all of its branches as ‘Designated Branches’ for ASBA by December 31, 2012.

6. All SCSBs shall submit a status report for each phase of the circular in the format prescribed at Annexure I, within 15 days from the due date of the phase respectively.

7. This circular is issued in exercise of the powers conferred under Section 11 read with Section 11A of the Securities and Exchange Board of India Act, 1992.

8. This circular is available on SEBI website at www.sebi.gov.in under the categories “Legal Framework” and “Issues and Listing”.